Retail sales data released Monday morning was very robust. With consumer spending representing two-thirds of the U.S. economy, it bodes well for second quarter GDP data to be released next week. A reading over 4% is quite likely, which would be the strongest growth since 2014. The sustainability of this rate of growth is in question though, as the quarter saw boosts from the tax cut and fiscal stimulus, which are not expected to be as impactful going forward. The second half of the year could also see impacts of the trade war intensify and weigh on growth.
Other data this week will focus on the homebuilding market. Housing starts should continue an upward trend of about 20% over a year ago. However, the rate of new construction is well below a pace that would ease the inventory challenge in the combined homebuying market for both new and existing homes.
Low inventories pushing prices higher is the theme of this year’s housing market. Supply problems are particularly acute for lower priced homes. Sales for homes under $100,000 were down 18% Y/Y in May and those between $100,000 and $250,000 were down 7% Y/Y. Rising rates have yet to temper demand, which is supported by a robust labor market, thus buyers should do all they can to position themselves competitively. Getting financing in place ahead of the house hunt is crucial, and we strongly advise buyers compare multiple loan offers first.
Released each month, The LendingTree Mortgage Offers Report contains data from actual loan terms offered to borrowers on LendingTree.com by lenders. Stay up to date with the most recent LendingTree Mortgage Offers Reports below: